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Credit Agreement
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Credit Agreement

11. CREDIT AGREEMENT

On January 23, 2024, the Company and the subsidiary guarantors thereunder entered into a Second Amendment (the “Second Amendment”) to their credit agreement, dated as of September 8, 2021 and as amended on April 1, 2022 (the “Existing Credit Agreement”), with the lenders from time to time parties thereto and Wintrust Bank N.A. (“Wintrust”), in its capacities as the sole lead arranger, sole bookrunner, administrative agent and letter of credit issuer thereunder (the Existing Credit Agreement, as further amended by the Second Amendment, the “Credit Agreement”).

The Second Amendment, among other things: (i) extended the maturity date of the revolving credit facility to January 31, 2027; (ii) lowered the “Prime Rate” floor from 4% to 3%; (iii) replaced BMO Bank N.A. (formerly known as BMO Harris Bank N.A.) with Valley National Bancorp as one of the lenders that were party to the revolving credit facility; and (iv) modified the relative commitments of the lenders that were parties to the revolving credit facility.

Termination of credit agreement

On July 29, 2024, the Company gave notice of the termination of its credit agreement, dated as of September 8, 2021, as amended, by and among the Company, as borrower, certain of its subsidiary guarantors thereunder, the lenders from time-to-time parties thereto and Wintrust Bank N.A. (the “Termination”).

At the time of the Termination of the Credit Agreement, the Company was not in default under the Credit Agreement, nor did it have any amounts outstanding thereunder. The Credit Agreement was due to mature on January 31, 2027. The Company made the decision to terminate the Credit Agreement due to the Company’s strong cash position and to avoid uncertainty under the Credit Agreement associated with newly effective Title IV financial responsibility requirements.

The Termination was effective on July 30, 2024. Upon effectiveness of the Termination, all security interests and pledges granted to the secured parties under the Credit Agreement were terminated and released. The Company did not incur any material early termination penalties in connection with the Termination.

Selected details of our credit agreement as of and for the years ended December 31, 2024 and 2023 were as follows (dollars in thousands):

 

 

As of December 31,

 

 

 

2024

 

 

2023

 

Credit Agreement:

 

 

 

 

 

 

Credit facility remaining availability

 

$

-

 

 

$

124,133

 

Outstanding letters of credit

 

$

-

 

 

$

867

 

Availability of additional letters of credit (1)

 

$

-

 

 

$

124,133

 

Weighted average daily revolving credit borrowings
   for the year ended

 

$

-

 

 

$

-

 

Weighted average annual interest rate

 

 

0.00

%

 

 

0.00

%

Commitment fee rate

 

 

0.00

%

 

 

0.30

%

Letter of credit fee rate (2)

 

 

0.00

%

 

 

7.50

%

________________

(1)
The letters of credit availability under the credit agreement with Wintrust was up to the borrowing limit of $125.0 million.
The letter of credit fee rate is based on prime minus 1.0%, subject to a minimum rate of 3.0%. The prime rate as of December 31, 2023 was 8.50%, which yields a 7.50% fee rate, which is reflected in the table above.